ACCT%203151%20Business%20PP6

ACCT%203151%20Business%20PP6 - Damages Nominal damages (no...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Damages Nominal damages (no loss) More than nominal damages (mental distress) Damages for reasonably foreseeable losses (loss of profits and expenses?) Damages for known losses Remedies for breach of contract vs remedies for misrepresentation Remedies for breach of contract Remedies for misrepresentation Reasonably foreseeable / All the incurred losses known losses (but not in all cases) Rescission (but not in all cases) Rescission What happened in Chan's case? A+B (contract at a better price - breached by C) (contract breached by A + B: compensation to D) D (Contract at a lower price to A + B) C E How to reduce our own losses? Example: A sold his land to B for $1 million. Breach of contract by B. C and D were willing to buy the land for $0.8 million and $0.7 million respectively. A sold his land to D. Result: B needs to compensate $0.2 million (not, $0.3 million) to A. How to assess damages? Generally speaking, to be assessed at the date of the breach of contract. Example: Day 1: Sale of land for $1 million. Payment to be made on day 2. Day 2: Payment not made. Market price of land has been decreased to $0.8 million. Day 3: Market price of land has been further decreased to $0.5 million. Result: Buyer needs to compensate $0.2 million (not, $0.5 million) to seller. Liquidated damages / Penalty? Genuinely pre-estimated amount? Excessive? No exact allowable forfeitable % of the total sum depends on the above principles Liquidated damages vs. penalty Liquidated damages: final settlement even if larger than the real loss. Penalty: the sum to be disregarded. Assessment of the damages to be based on the real loss. Rescission in SOGO cases Late delivery Serious defective deliveries of goods delivered by instalments) Rescission of all the goods (one lump sum) Lesser or more quantity Mixed goods Rescission of all the goods Rescission of all the goods or the goods in excess Rescission of all the goods or the wrong goods Rescission in SOGO cases In cases involving serious defective deliveries of goods delivered by instalments, when would rescission be allowed? How many deliveries were defective? Would defective deliveries happen again? Injunction / specific performance Can there be specific performance order / injunction order made in relation to the following items? An ordinary chair The picture of `Mona Lisa' Injunction / specific performance Employers cannot: Force employees to work for them as promised Prevent employees from leaving their companies until the end of employment as promised But, employers can: Disallow employees to work for others during the employment period generally ...
View Full Document

Ask a homework question - tutors are online